NCTO urges stronger USMCA to safeguard western Hemisphere textile chain

The National Council of Textile Organizations (NCTO) has voiced its support for reviewing and strengthening the United States–Mexico–Canada Agreement (USMCA), highlighting the trade deal’s crucial role in sustaining textile manufacturing and jobs across the Western Hemisphere.

Representing the full U.S. textile supply chain—from fiber and yarn producers to fabric mills and finished goods manufacturers—the council emphasized the importance of maintaining a stable regional trade network that benefits all three countries. NCTO called on the U.S. administration to enhance customs enforcement and take firm action against unfair trade practices that threaten domestic industries.

In its recent comments to the Office of the U.S. Trade Representative (USTR), NCTO supported keeping USMCA-qualifying trade exempt from International Emergency Economic Powers Act (IEEPA) tariffs, which were introduced to combat illicit fentanyl and illegal migration. The organization also urged a similar exemption for the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), which currently faces reciprocal IEEPA tariffs.

Textile trade within the USMCA region remains vital for American producers. The U.S. exported $12.3 billion in textiles—over half of its total exports—to Mexico and Canada last year. Much of this trade follows a circular model, where U.S.-made components are turned into finished goods in partner countries and reimported for sale in the domestic market. This two-way trade, worth around $20 billion annually, supports significant investment and employment in the sector.

The USTR’s review, scheduled for next year, offers a chance to refine the agreement. NCTO’s submission outlines several priorities:

• Protecting the yarn-forward rule of origin. The group urged limits on exceptions such as tariff preference levels and single transformation rules, which can weaken regional supply chains.
• Improving customs enforcement. NCTO called for deeper cooperation between USMCA members, including transparent trade data, public reporting, and tougher penalties for repeat trade law offenders.

The organization praised the administration’s recent steps to address long-standing trade imbalances but cautioned against overlooking key regional partners. “Our trade ties with countries in the Western Hemisphere are essential to the health of the U.S. textile industry,” NCTO stated. “We encourage continued attention to these relationships and to measures that strengthen supply chain integrity.”

The upcoming joint review of the USMCA with Mexico and Canada will determine how effectively the agreement continues to serve North American textile and apparel producers in a changing global trade environment.